Slide 1: Pillar 3 & Capital Update for 30 June 2012
For personal use only PILLAR 3 & CAPITAL UPDATE FOR 30 JUNE 2012 22 August 2012 Westpac Banking Corporation ABN 33 007 457 141
Slide 2: Highlights of June 2012 Pillar 3 Report
Highlights of June 2012 Pillar 3 Report For personal use only Balance sheet and exposure highlights Tier 1 ratio (%) • Tier 1 capital ratio at 30 June 2012 up 25bps from March 2012 Common Equity Basel 2 Basel 2 2.5 51 – Tier 1 capital balances up 2% Residual Tier 1 9.8 10.1 – Risk weighted assets (R
Slide 3: Asset quality stable
Asset quality stable For personal use only • Stressed assets to TCE1 down 1bp on 1H12 to 2.25% (down 23bps from 2H11) Stressed exposures as a % of TCE1 – Little change across all categories of Impaired Impaired, 90 days past 4.0 due well secured and Watchlist & substandard Impaired – Small rise in t
Slide 4: Stressed exposures stable; provisioning remains strong
Stressed exposures stable; provisioning remains strong For personal use only New and increased gross impaired assets ($m) Stressed exposures1 by industry ($bn) 8 9 6 Data for 1 quarter only 5 7 1H11 2H11 1H12 3Q12 2 149 2,149 1,798 1,748 6 4 1,519 1,343 1,218 1,060 538 5 3 1H09 2H09 1H10 2H10 1H11 2
Slide 5: Commercial property exposures comfortably within appetite
Commercial property exposures comfortably within appetite For personal use only • Commercial property represents 6.7% of TCE and 8.1% of gross lending at June 2012, down from peak of 10.0% and 13.0% respectively in December 2008 • Current level of commercial property is well within risk appetite app
Slide 6: Consumer asset quality continues to perform well
Consumer asset quality continues to perform well For personal use only • Consumer asset quality continues to perform well given the low Australian mortgage delinquencies (%) levels of unemployment and ongoing cautious consumer behaviour >90days >30days 1.6 • Mortgage 90+ day delinquencies little cha
Slide 7: Strong capital position
Strong capital position For personal use only • Common equity ratio up 22bps to 8.18% over 3Q12 supported by good organic capital generation and normal dividends paid 2H11 1H12 3Q12 up from wealth entities Capital ratios (%) (B (Basel l II) (B (Basell 2 2.5) 5) (Basel (B l22.5) 5) – Common equity ca
Slide 8: Strongly placed for new capital rules
Strongly placed for new capital rules For personal use only Westpac is in a very strong capital position in the lead-up to the implementation of Basel III. In assessing appropriate capital levels the following are key considerations Key considerations Comment Common equity ratio under Westpac’s rati
Slide 9: Further rise in deposits enhances funding
Further rise in deposits enhances funding For personal use only • Stable Funding Ratio (SFR) remains strong at 79% for 3Q12 Funding composition by residual maturity (%) – Deposit growth continued to more than fully fund loan growth over the quarter (and over the year to date) Wholesale Onshore <1Yr
Slide 10: Investor Relations Team
Investor Relations Team For personal use only Equity Investor Relations For further information on Westpac Andrew Bowden Leigh Short Please visit our dedicated website Head of Investor Relations Senior Manager www.westpac.com.au/investorcentre click on ‘Analysts’ Centre’ +61 2 8253 4008 +61 2 8253 1
Slide 11: Disclaimer
Disclaimer For personal use only The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it